Ch. 4 Notes (pgs: 65-73)
Opportunity Analysis consists of 3 interrelated activities:
Opportunity Identification:
Opportunity Organization Matching: determines whether an identified market
opportunity is consistent with the definition of definition of the org’s bus. mission
statement and distinctive competencies. SWOT
Opportunity Evaluation: 2 distinct phases:
oQualitative: focuses on matching the attractiveness is dependent on
Competitive activity
Buyer requirements
Market demand and supplier sources
Social, political, economic and technological forces
Organizational capabilities
oQuantitative: yields estimates of market sales potential and sales forecasts,
produces budgets for financial, human, marketing, and production resources.
Market: prospective buyers wiling and able to purchase the existing or potential
offerings of an org.
Market share: the sales of a company, product or service or brand divided by the sales
of the market, expressed a %
Market Segmentation: the breaking down or building up of potential buyers into groups
that are homogenous. Benefits are:
oIdentifies opportunities for new product development
oHelps in the design of marketing programs that are most effective for reaching
homogeneous groups of consumers
oImproves the allocation of marketing resources
Bases for Market Segmentation
oSocioeconomic characteristics: gender, age, occupation, income, family life
cycle, education, geographic location
oBehavioral variables: benefits sought form products and services, usage
behavior, lifestyle, attributes.
Effective Market Segmentation should answer:
oWho they are?
oWhat do they want to buy?
oHow do they want to buy?
oWhen do they want to buy?
oWhere do they want to buy?
oWhy do they want to buy?
Each Market segment should be:
oMeasurable: size and buying power
